HD36 - Research & Development Strategies for the Commonwealth of Virginia


Executive Summary:
The Research Sub-committee of the Virginia Research and Technology Advisory Commission (VRTAC) reviewed the present research and development framework in the Commonwealth and evaluated its propensity to create economic opportunity within the existing structure. Strategies for consideration included areas the federal government will emphasize within the next five years, the Commonwealth’s research and development (R&D) assets and capabilities, the current and future growth industries in the Commonwealth, and the means to strengthen the Commonwealth’s position in global research and development competition.

The report is in response to legislation in House Bill 2760, which directed VRTAC, in conjunction with the Secretaries of Technology, Commerce and Trade, and Education, to develop strategies for research and development in the Commonwealth. All three respective Cabinet Secretaries are members of VRTAC, as well as the heads of research of universities, federal labs, two Virginia Delegates and a Virginia Senator, and private and public sector research and technology gubernatorial appointees who comprise the twenty nine person VRTAC membership.

The Research Sub-committee considered and debated broad ranges of R&D strategies and ultimately developed a series of recommendations that could be addressed without extensive budgetary considerations, due to the difficult economy. Drawing on recommendations from university research officers and the plethora of Commonwealth studies in recent years, the VRTAC concludes that the most affordable, most realistic state-fostered research strategy is one led by renewed investments in human capital. VRTAC makes eight specific recommendations that can build human capital and meet a second strategy that encourages collaboration and partnership.

Current recommendations include:

1. The Commonwealth of Virginia should assemble and dedicate resources necessary to attract and retain top researchers, research faculty and graduate research assistants at Virginia’s colleges and universities. This strategy incorporates specific suggestions, such as a significantly more robust eminent scholars fund for science, technology and engineering and a new graduate research assistant stipend program.

2. The Commonwealth of Virginia should review and invigorate partnerships with local governments, economic development agencies and regional technology councils to improve the attractiveness of Virginia as a location for new private and non-profit research and development enterprises. This effort might include targeted investments in science, technology and engineering workforce development; in quality-of-life improvements; in tax and other business incentives specifically for R&D activity; in real time prospects/projects of opportunity information sharing; and in coordinated marketing initiatives.

3. The Commonwealth of Virginia should reestablish the strong foundation necessary to coordinate and integrate the teams, consortia and partnerships of the R&D future by funding its Center for Innovative Technology for at least $7.65 million annually, but preferably a baseline level consistent with annual appropriations made prior to the rounds of budget-driven cuts in the last two years. The Commonwealth also should monitor and analyze continuously the investments and initiatives of other states to remain competitive.

4. The Commonwealth of Virginia should ensure there are dedicated state research and investment funds in the existing Commonwealth Technology Research Fund (CTRF) to meet leverage and/or match requirements for the federal and private sector investments it is pursuing. Annual budget allocations should be set based on the projected federal and private investment targeted. Additionally, the Commonwealth should renew its commitment to seed R&D ventures in Virginia directly by investing $10 million annually in the existing Commonwealth Technology Research Fund (CTRF).

5. The Commonwealth of Virginia should continue to promote the Institute for Defense and Homeland Security, the consortium of university, industry and federal research and development partners launched in 2003, and to invest where possible to further the work of the Institute.

6. The Commonwealth of Virginia should form and fund aggressively new research consortiums devoted to life sciences and nanotechnology.

7. The Commonwealth of Virginia should encourage and reward those institutions of higher education making the most progress in expanding their R&D efforts in priority fields of inquiry in a collaborative manner by authorizing institutions to recover the 30 percent of indirect costs associated with R&D that is now credited to the general fund.

8. The governor and General Assembly should develop plans to convert into specific investments the results of the 2003 governor’s initiative to identify the most promising R&D areas and programs in Virginia.

VRTAC stands ready to elaborate on the aforementioned recommendations as necessary to support the Governor and General Assembly in implementation of the strategies for ensuring the continued development of successful R&D in the Commonwealth of Virginia.